Shiseido Co., Ltd. will establish a wholly owned manufacturing subsidiary in Vietnam in April 2008. Construction on a 100,000 building is scheduled to begin in December 2008, with a projected completion date of October 2009 and operations to begin in December 2009. Shiseido Vietnam Inc., according to the company, will serve as a production base for the expanding Asian market. Expected construction costs are expected to total $38 million.

Shiseido’s overseas business has been growing, according to the company, and net sales is projected to exceed 36% for the fiscal period ended March 2008. With consideration to business growth in China, the third phase of an expansion project at its Shanghai factory to augment its production system was completed in September 2007. While China will continue to be the core focus, Shiseido believes the Vietnam facility will augment its product supply system from the present level for Asian markets centered on ASEAN nations, which are experiencing ongoing expansion and growth. Plans call for producing mainly mid-range and economically priced skin care products for the ASEAN region.